Local lawmakers split over court ruling

Two of San Diego’s leading lawmakers weighed in with opposite reactions to today’s landmark California Supreme Court ruling that upholds the state’s authority to disband redevelopment agencies, and one which could have far-reaching implications for downtown.

The ruling is “misguided” and legislation is immediately needed to help cities cope with the setback, according to Assemblyman Nathan Fletcher, a Republican running for mayor.

But Assemblyman Marty Block, a Democrat seeking a state Senate seat, said the choice came down to either diverting redevelopment agency money or making even deeper cuts in schools and public safety.

However, both found common ground in calling on the Legislature to immediately explore avenues to reconstitute the agencies, with some guidelines, so that they can invigorate development and push for affordable housing projects. (The court did strike down a second move by Gov. Jerry Brown and Legislature that sought to allow redevelopment agencies to reorganize under stricter standards.)

“Today’s ruling by the California Supreme Court validates a key component of the state budget and guarantees more than a billion dollars of ongoing funding for schools and public safety,” Brown, a Democrat, said in a statement.

In his statement, Fletcher said: “Sacramento should not be balancing its budgets on the back of local government, Instead, we should be focused on making state government more efficient and finding new ways to solve old problems. Redevelopment has the potential to generate millions of dollars in much-needed tax revenue that will help maintain and improve basic city services in our neighborhoods. Fletcher pledged to work with cities and community groups “in support of legislation that gives cities the tools they need to revitalize urban areas and create good-paying jobs for residents.”

He did not provide specifics.

In an interview, Block said he was torn over the original legislation to dissolve redevelopment agencies, but voted for it to help spare schools, public safety and services for seniors from deeper cuts.

“San Diego has done a relatively good job with redevelopment funds. I was reluctant to vote to take those funds away, but there were places in the state where the funding was abused,” Block said.

Block added that he wished the court had upheld the law allowing redevelopment agencies to restructure and commit to affordable housing projects.

He said he wants to see compromise legislation that would pass court muster. “We need to continue with redevelopment. It’s an economic stimulus and it improves the quality of life in those areas,” Block said. “But we need to be more judicious in determining what projects qualify for redevelopment funding and how those projects should be funded. This gives us that opportunity.”

Assemblyman Ben Hueso, D-San Diego, issued a statement critical of the court’s decision to overturn the legislation that would have allowed agencies to regroup.

“The Legislature put forth a reasonable solution that would have preserved redevelopment,” Hueso said. “The legal challenge (by agencies) was a miscalculation that now makes it harder for the Legislature to restore a meaningful community revitalization program.”

The League of California Cities and California Redevelopment Association, in a joint statement, promised to pursue legislation to revive the programs.

“Redevelopment is indispensable,” said Chris McKenzie, executive director of the League of Cities. Added Jim Kennedy of the redevelopment association: “Time is of the essence and the future of California’s economy is at stake.”

Redevelopment agencies generally employ various incentives to encourage businesses to locate in downtrodden areas, but have been sharply criticized for diverting property taxes from other uses for some questionable projects.

Betty Yee, chairwoman of the state Board of Equalization, said the ruling will “eliminate a powerful tool for creating local jobs. Despite isolated abuses, redevelopment ... has proved more effective in creating local jobs and encouraging businesses to invest in local communities than tax breaks or other tools.”

Juan Vargas, D-San Diego, said through his staff that he has “studiously” read the decision and “plans to discuss its impacts with staff experts and budget leadership early next year before speculating on the impact...”

The ruling could have consequences for a number of projects within redevelopment areas, including a potential new home for the Chargers.

Assembly Speaker John Perez, D-Los Angeles, called the ruling “mixed” because it blocked the Legislature’s plan to create “smaller, more targeted redevelopment agencies that fully fund affordable housing.”

But Senate President pro Tempore Darrell Steinberg welcomed the decision as one that will ease the pain when lawmakers try to balance the next budget.

A Sacramento Democrat, Steinberg said he is “open to all ideas that put us on a positive path” as lawmakers explore how to stimulate investment in local economies and affordable housing.

The ruling comes as Brown prepares to submit his 2012-13 budget.

The San Diego County delegation split along party lines when the two redevelopment reform measures came up for floor votes. Democrats voted for both; Republicans were opposed.